A federal racketeering lawsuit filed in Georgia last week alleges that California cannabis brand leaders STIIIZY and Cookies – along with 12 co-conspirators – illegally sold marijuana products that had been intentionally mislabeled as federally-legal delta-8 hemp goods, and asks for a minimum of $150 million in damages.
The class action suit, filed Feb. 6 in U.S. District Court in the northern district of Georgia, claims that resident Hannah Ledbetter was misled by the defendants into purchasing the federally illegal marijuana products that had been sold as federally legal hemp goods that included 0.3% delta-8 THC or less, which is the federal threshold for legal hemp products.
“Defendants have conspired to import, manufacture, distribute, and possess illegal (delta-8) THC vape pens that are marijuana” and not hemp under federal law, the suit charges. “This scheme could only be accomplished through a pattern of racketeering activity.”
The suit asserts that Ledbetter carefully inspected the product labels prior to purchase “because she did not want to break the law.”
Rather, the suit claims, the products that Ledbetter ultimately bought – at multiple retail chains that do business in Georgia – were found to have delta-9 THC “far above what is allowed by law,” according to third-party testing results.
STIIIZY IP LLC, Cookies Creative Consulting & Promotions, and their partners “have facilitated the manufacturing, distribution, and/or sale of illegal marijuana to thousands of people over the course of the last four years,” the suit charges
Hellbound and Down 